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When Crunch Time Comes, Go To Bat For Your Teenage Driver

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The Tampa Tribune

Published: November 25, 2007

The aging Oldsmobile you purchased from Granny may not be the coolest ride on the street, but it's perfect for your inexperienced teenage driver.

Wrapped in steel and sheet metal, the blue bomber is safe, the engine purrs, gas mileage is decent, and the odometer hasn't crossed 60,000 miles.

Then, wham. A slick street, squealing brakes, and the rear bumper and trunk resemble an accordion that has been stretched to the limit. Fortunately, your high schooler is OK, the car is drivable, and the damage looks reparable.

You're thinking, no big problems - after all, the other driver was at fault for the rear-ender, and his insurance should cover the repairs.

Here's where things start to fall apart. The insurer declares the car a total loss, and the $1,600 check it wants to cut for the vehicle's cash value won't come close to covering a comparable replacement. Then there's the sentimental factor: The car was Granny's pride and joy, and now it's a step from the scrapheap.

Recently, I encountered a situation similar to this. Not knowing exactly how to proceed, I went in search of experts to help me figure out what to do. Here's some advice on what to be thinking when the kid car gets crunched - and it's the other guy's fault.

Make your case. Should you take the insurance payout and apply it toward a replacement vehicle? Is it worth repairing? How hard can you push for a better deal with the insurer?

My advice: Play out all your options.

If you're intent on getting your teen's car repaired, you may have negotiating leverage with the other driver's insurer. The company's payout offer is just that, an offer, so diplomatically shove back with the help (we hope) of your agent.

For example, assuming the car has been well-maintained, turn over copies of all repair bills along with receipts - say, for the new tires and the paint job. The point: Show the insurer that the car was a valuable asset and not a bucket of bolts.

In addition, find out how much your car was worth before the accident. Don't just take the word of the insurance company, whose goal is to minimize claims payouts and maximize profits.

Research online guides such as National Automobile Dealers Association guide and the Kelley Blue Book to find cars within proximity to your hometown that most closely match your vehicle.

As I discovered, this can be a problem with older models because the data may get sketchy. But if you know there are few if any comparables similar to the late-model Olds that are in good to excellent (preaccident) condition with low mileage, you may have gained a few hundred dollars more on the payout to cover repairs or a replacement.

"Don't be afraid to present your case and ask ... for an adjustment," according to Edmunds.com, an online consumer car-buying site. "If your argument is sound, companies will probably listen to you."

Sort out your options. What if the insurer won't pony up more on the value of the car to cover repairs?

Certainly, take the check, have the car surgery performed at an agreed-upon garage and shell out the balance due.

Some companies may let you salvage the "totaled" vehicle, but the check you receive will be reduced by the amount the company thought it could get from the salvage yard. In this case, you run the risk of having to pay even more on repairs.

Another option, assuming there is collision coverage on your teen's car: File a claim with your own company to get the car repaired. You will be out your deductible, of course. But there's risk here, too: an accident mark on your policy involving a teen that could result in higher premiums or policy termination.

Don't roll over. If you believe the other driver's insurer didn't give you a fair shake or your own agent didn't go to bat for you, complain to higher authorities. Start with an agency manager or regional director. Also, consider writing a letter to the state insurance department.

Overinsured, underinsured? Ideally you got around to deciding this when the car was purchased, but there's nothing like an accident to prompt a review of your policy. Most insurance experts recommend skipping the collision and carrying only liability coverage on teen cars that may be worth at best a couple of thousand dollars.

"The determining factor is what you pay for the car," said Chuck Eberle, an insurance agent in Olathe, Kan. In the event of an accident, he added, "can you afford to lose that money?"

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